5 reasons why ad fraud will continue to grow in the coming years

ad_fraud

According to the latest study of WFA (Compendium of ad fraud knowledge for media investors, WFA 2016.) ad-fraud is expected to increase at 19%-26% CAGR in the following 10 years and is going to reach 40-140 $ billion by 2025. We collected the reasons:

  1. Ad fraud: low effort with high reward

ad fraud potential

A recent report from Hewlett Packard classified ad fraud as having a higher ‘potential payout’ than any other form of digital crime.

2. Increasing rate of programmatic media buying
Programmatic advertising is one of the fastest growing segments of digital marketing nowadays. Beside its efficiency we often hear that it is most exposed to ad fraud. Lack of transparency and fear of brand risk are still unsolved problems in programmatic ad buying.

3. Low quality sourced traffic
If we think that premium publishers aren’t affected in the fraud, we are wrong. Low quality sourced traffic (digital media publishers or vendors acquire audience (visitors) through third parties) has become commonplace among publishers, often as a means to deliver campaign targets to advertisers.

4. Advertisers measure wrong events like page views or clicks, both can be done by humans and bots. Effective measurement of media consumption is still a significant challenge for the industry.

5. Lack of cooperation and regulation
Many fraudsters aren’t local and live outside of the targeted countries. This type of crime isn’t exactly the sort which triggers cooperation against fraudsters by adequate authorities.

Behavior change is required across the industry and joint international action against fraudsters. As Stephan Loerke, Chief Executive Officer of WFA stated that, “The problem we face is complex and may appear intimidating. But ignoring it by looking the other way, is not an option.” At enbrite.ly we believe the same and do everything to regain the confidence in digital advertising transactions and help avoiding the predictions above…

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